World gold prices extended their upward momentum to a third consecutive session, surpassing the 4,128 USD/ounce mark as the market expects the US Federal Reserve (Fed) to reduce pressure to raise interest rates in the near future.
As of 10:48 am Vietnam time, spot gold prices increased by 2.34% to 4,128.75 USD/ounce. Meanwhile, December gold futures contracts increased by 0.78%, to 4,185.12 USD/ounce.
The rise in gold took place after the Fed kept interest rates unchanged at a meeting at the end of July. Currently, the market assesses the possibility that the Fed will only raise interest rates once this year, instead of twice as previously expected. Expectations for less tight monetary policy have supported gold prices, as the precious metal does not bring yields.
However, Fed officials are still sending cautious signals about inflation. Some opinions suggest that further economic data should be monitored before making decisions on the monetary policy roadmap in upcoming meetings.
In addition, investment cash flow also shows signs of improvement. Gold buying demand through ETF funds in China has increased in recent weeks, contributing to supporting gold prices to stay above the psychological threshold of 4,000 USD/ounce.
On the precious metals market, spot silver prices rose 2.05% to $60.75/ounce. Platinum rose 1.03% to $1,755.62/ounce, while palladium rose 1.09% to $1,365/ounce.
In the opposite direction, the energy market adjusted down. Brent oil price decreased by 1.16% to 78.44 USD/barrel, while WTI oil decreased by 1.46% to 74.66 USD/barrel.
In the coming time, the focus of the market will still be US economic data, especially the jobs report and inflation-reflecting indicators. These figures will affect expectations about the Fed's interest rate roadmap, thereby affecting the diễn biến of the USD, US government bond yields and gold price trends.
